The board of Bharti Airtel on Wednesday approved raising up to $3 billion through debt and equity, the telecom operator said in a regulatory filing on Wednesday.
The board of Bharti Airtel on Wednesday approved raising up to $3 billion through debt and equity, the telecom operator said in a regulatory filing on Wednesday. Apart from raising $2 billion through different means such as qualified institutions placement and public or private offerings of equity shares, Sunil Bharti Mittal-led telco will also raise up to $1 billion, thereby totaling $3 billion. “(T)he Board of Directors of the Company, in its meeting held today (i.e. December 04, 2019) has, subject to the approval of shareholders and/or other regulatory/statutory approvals, approved the raising of funds,” Bharti Airtel said. The shares of the telecom operator ended the trade at Rs 460.85, up 1.90, or 0.41 per cent on BSE.
In Q2, Bharti Airtel posted a Rs 23,045 crore loss from a net profit of Rs 118 crore in the year-earlier, due to provisions made for an unfavorable court verdict. Bharti Airtel’s net loss exceeded its consolidated revenue from operations which grew 4.9 per cent year on year to Rs 21,131 crore in the September quarter.
Meanwhile, Sunil Bharti’s Bharti Airtel, along with other telecom players including Vodafone Idea and Reliance Jio raised tariffs. The announcement came after the Supreme Court, on October 24 this year allowed the central government to recover Rs 92,641 crore in AGR from telecom operators, including Bharti Airtel, Vodafone Idea, and Reliance Jio. However, the union cabinet on November 20, 2019, announced a Rs 42,000-crore package to debt-laden telecom companies after it agreed not to make any payments for the spectrum they use for the next two years, providing much-needed relief to the debt-struck telecom companies of the country.